Financial Advisor Start-Ups Offering Low-Cost Guidance Online
Article by Dinah Wisenberg Brin
Betterment, based in New York City, is one of several relatively new online services offering investors automated financial advice and money management, often at a discount to traditional financial planners. These services often target the young and tech-savvy, catching them just as they are getting serious about investing.
According to founder and CEO Jonathan Stein, the typical Betterment customer is a professional who’s had a change, such as a marriage or major promotion, that makes money more significant. Some firms offer significant savings. While traditional financial advisors may charge a management fee of 1 percent to 2 percent, Betterment charges all-inclusive fees ranging from 0.35 percent for accounts with low balances to 0.15 percent for those with $100,000 or more, Stein said.